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./j <br /> Elk River <br /> Municipal Utilities <br /> A.4—Capital Asset Guide <br /> Introduction <br /> For fiscal year ending December 31, 2003, Elk River Municipal Utilities will be required <br /> to implement Governmental Accounting Standards Board (GASB) Statement No. 34, <br /> Basic Financial Statements—and Management's Discussion and Analysis—for State and <br /> Local Governments. Statement No. 34 establishes new financial reporting requirements <br /> for state and local governments throughout the United States. When implemented, it will <br /> create new information and will restructure much of the information that governments <br /> have presented in their annual reports in the past. The intent of these new requirements is <br /> to make annual reports more comprehensive and easier to understand and use. <br /> Two key implementation challenges the new reporting model presents are infrastructure <br /> reporting and depreciation accounting. Statement No. 34 requires governments to report <br /> general infrastructure assets and depreciate general governmental capital assets over their <br /> estimated useful lives. <br /> While this document is not all encompassing, it has been prepared to provide general <br /> guidance on implementing the new reporting requirements in regards to capital assets for <br /> financial reporting purposes only. The primary objectives of financial reporting generally <br /> pertain to valuation, allocation,presentation and disclosure;therefore,this policy should <br /> not be used for property control purposes. <br /> This policy will take effect on: January 1, 2004 <br /> 1 <br /> 61 <br />